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John123 in Gainers & Losers,

T.J. Maxx owner's profit forecast disappoints, shares marked down 5.6%

TJX Cos Inc (TJX), operator of off-price retail chains T.J. Maxx and Marshalls, forecast a profit for full year that fell short of analyst estimates as costs rise due to higher wages and a strong dollar erodes revenue from outside the United States.

Shares of the company, which also owns HomeGoods stores, closed down 5.6% @ $78.14. TJX raised its profit forecast for the year ending January to $3.39-$3.43 per share, but this was less than the $3.48 analysts were expecting.

TJX sells apparel and accessories, including brands such as Dolce & Gabbana and Versace, at prices ranging from 20% to 60% below those at other retailers.

The company, which has stores in Canada, the UK and Australia, got more than a fifth of its sales from stores outside the United States in the just-completed second quarter.

Sales in the UK were slightly lower than hoped, Chief Financial Officer Scott Goldenberg said on a conference call.

However, he said "trends leading up to the Brexit vote were very strong" and that "we believe we are gaining significant market share in this environment."

TJX had 343 stores in the UK at the end of January.

TJX reported a bigger-than-expected increase in quarterly comparable sales as more bargain-hungry shoppers visited the group's stores. Sales at stores open at least a year rose for the 30th straight quarter. 

Comparable-store sales rose 4% in the second quarter ended July 30, beating the average analyst estimate of 3.5%, according to a poll by research firm Consensus Metrix.

Off-price retailers and fast-fashion chains such as Zara and H&M are growing quickly as they draw shoppers from department stores and other mall-based chains.

They are also opening more stores, while department store chains such as Macy's Inc M.N are scaling back.

TJX opened a net 14 stores in the second quarter, giving it a total of 3,675 worldwide.

The Framingham, Massachusetts-based company's net income rose 2.3% to $562.2 million, or 84 cents per share. Net sales rose 7% to $7.88 billion.

Analysts on average had expected a profit of 81 cents per share and revenue of $7.85 billion, according to Thomson Reuters.

One more case where investors should not pay attention to analyst's forecast. Actual net income and net sales beat forecast, sales are growing 30 straight quarters. What else do you want from retailer? They just missed analyst's forecast for next quarter. And the stock was marked down 5.6%. Unbelievable. I am going to buy TJX.